Calculation Questions: 5. The following information relates to ABC Limited. The owner is concerned about the profitability and financial structure of the business at 30 June 2018, especially since the bank requires repayment of the business's overdraft. Revenues (sales on credit) Gross profit Other expenses Inventories Trade accounts payable 30 June 2017 $55,000 20, 900 7,000 15,000 26,000 Required 1. Calculate the inventory turnover for 2017 and 2018. 2. Calculate the inventory turnover in days for 2017 and 2018. 30 June 2018 $41,000 14,700 9,000 18 000 29,000
Calculation Questions: 5. The following information relates to ABC Limited. The owner is concerned about the profitability and financial structure of the business at 30 June 2018, especially since the bank requires repayment of the business's overdraft. Revenues (sales on credit) Gross profit Other expenses Inventories Trade accounts payable 30 June 2017 $55,000 20, 900 7,000 15,000 26,000 Required 1. Calculate the inventory turnover for 2017 and 2018. 2. Calculate the inventory turnover in days for 2017 and 2018. 30 June 2018 $41,000 14,700 9,000 18 000 29,000
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4SEA: FINANCIAL RATIOS Based on the financial statements foe Jackson Enterprises (income statement,...
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Transcribed Image Text:Calculation Questions:
5. The following information relates to ABC Limited. The owner is concerned about the
profitability and financial structure of the business at 30 June 2018, especially since the
bank requires repayment of the business's overdraft.
Revenues (sales on credit)
Gross profit
Other expenses
Inventories
Trade accounts payable
30 June 2017
$55,000
20, 900
7,000
15,000
26,000
Required
1. Calculate the inventory turnover for 2017 and 2018.
2. Calculate the inventory turnover in days for 2017 and 2018.
30 June 2018
$41,000
14,700
9,000
18 000
29,000
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